"Merge the cases" → "I will clarify evidence opinions": Ostem embezzler changes stance

Court: "Concern Over Tight Evidence Investigation Period"
Defendant: "Evidence from Other Cases Should Be Excluded"

Lee Mo, who is accused of embezzling 221.5 billion KRW from Osstem Implant, is being transferred to the prosecution from Gangseo Police Station in Seoul on the 14th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Yoo Byung-don] Lee Mo (44), the finance team leader of Osstem Implant who was arrested and indicted on charges of embezzling 221.5 billion won of company funds, is showing ambiguous behavior during the trial process, including reversing his previous stance of wanting to be tried together with the crime proceeds concealment charges.

The Criminal Division 14 of the Seoul Southern District Court (Chief Judge Kim Dong-hyun) held the third hearing on the 12th at 2 p.m. for Lee, who was indicted for violation of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement in the course of business).

On that day, when the court pointed out, "There is concern that evidence investigation will have to be conducted when the detention period for this case is almost over while waiting for additional charges to be filed," Lee’s defense attorney responded, "If evidence related to the concealment of crime proceeds is excluded from this trial, it should be fine," and added, "We will express our opinion on the evidence."

Previously, Lee’s side had said, "If the defendant is indicted on charges of concealing crime proceeds, we want to be tried together with this case (embezzlement)," and "If we agree to evidence in the embezzlement case but later disagree, there is concern that the court might prejudge, so we want to handle the evidence admission or denial procedures all at once after additional indictment."

Regarding this, the court requested the prosecution to "make efforts to indict on additional charges as well."

Furthermore, the court accepted the third-party participation application filed by Lee’s wife, younger sister, and brother-in-law. According to the Special Act on the Confiscation and Recovery of Corrupt Property, a third party who owns property that may be confiscated can apply to participate in criminal proceedings. If the court accepts the application, the third party has procedural rights equivalent to the defendant in the confiscation trial.

Lee used the embezzled funds to purchase real estate worth 7.5 billion won under the names of his wife and sister-in-law and gifted commercial buildings he owned to his wife and sister-in-law, one building each.

When the court approved the seizure preservation of Lee’s crime proceeds amounting to 114.4174 billion won in February, Lee’s wife and younger sister submitted a written 'third-party participation application,' claiming their property rights over the frozen crime proceeds. The prosecution believes that some of the embezzled funds were used to purchase real estate under family members’ names or to repay loans related to existing buildings before gifting the buildings to them.

However, the court said, "It seems like a defense claiming that the property is unrelated to the embezzlement case because of concerns that it might be confiscated due to the defendant’s property issues, but it is legally valid, so the application is accepted," and added, "Please assert your rights according to the prescribed procedures."

Accordingly, Lee’s relatives will be able to participate in the trial and claim that the properties under their names were acquired through their own efforts.

The next hearing for Lee will be held on the 2nd of next month at 2 p.m.

Lee is accused of siphoning off 221.5 billion won from corporate accounts to his own account eight times since March last year. Part of the embezzled funds was invested in stocks, resulting in a loss of about 76.1 billion won. On March 28, the Seoul Gangseo Police Station referred Lee, his wife, younger sister, and brother-in-law?five people in total?to the prosecution on charges of violating the Act on the Regulation of Concealment of Crime Proceeds.